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Dealer Overflow – Signs of US Inventory Pileup

For the first time in his 37 years working at New Jersey car dealerships, Larry Kull had to rent extra space to store unsold new Honda vehicles — one of the latest signs that the record U.S. auto market is cooling.

While automakers may not be facing a significant sales slowdown, they’ve supplied dealers as though the market would keep growing following last year’s record 17.55 million annual sales. The inventory glut also is a reflection of the challenge it’s been for companies to make deep enough cuts to production of slumping passenger cars, which Americans are snubbing in favor of sport utility vehicles.

“No one likes to cut production or dial up incentives, and we’re seeing a bit of both,” Thomas King, an analyst with J.D. Power, said by phone. “We’ve got a lot of cars on the ground when the market is moving away from cars.”

Among eight major automakers in the U.S., General Motors Co., Honda Motor Co. and Volkswagen AG are expected to post sales gains this month. Combined deliveries for the VW and Audi brands may gain 17 percent, as the German automaker recovers from an emissions scandal that halted sales of diesel models a year ago.

Across dealer lots in America, inventory is piling up as automakers produce more cars than are being bought. Dealers had about 85 days worth of cars and trucks on hand at the beginning of February — about 22 days more than at the beginning of 2017 and eight days more than a year earlier, according to Automotive News Data Center.

“The sales are good, I just have more product on the ground than I’ve had before,” said Kull, who has about 60 days of passenger cars including Civic compacts and Accord sedans stocked at an office parking lot down the road from his Honda store in Marlton, New Jersey. He prefers to have just 45 days worth of cars on hand.

The buildup suggests automakers will have to cut back production or boost discounts as the market’s record growth spurt peters out. Analysts project automakers’ sales slowed this month to a seasonally adjusted annualized rate of 17.5 million light vehicles, according to a Bloomberg News survey, from 17.7 million a year earlier.

Analysts project GM sales will rise about 2.5 percent. The largest U.S. automaker boosted discounts on its full-size trucks this month, likely supporting sales of the Chevrolet Silverado and GMC Sierra models that compete with Ford Motor Co.’s F-Series and Fiat Chrysler Automobiles NV’s Ram pickups.

Fiat Chrysler is expected to post the biggest drop among the major automakers, with analysts estimating a decline of about 8.4 percent. GM spent 26 percent more in discounts on each Silverado truck than Fiat Chrysler paid per Ram and 85 percent more than Ford allocated for F-Series, according to J.D. Power dealer data obtained by Bloomberg News.

As GM staged a “Truck Month” promotion in February, Nissan Motor Co. advertised as much as $5,050 off 2017 Altima sedans in some markets. Despite the discounts, Nissan sales are forecast to fall about 1.8 percent this month. Automakers marketed big incentives after it took dealers an average of 75 days to sell a car last month, seven days longer than a year before, according to data from Kelley Blue Book.

Production cutbacks also have already begun. GM and Fiat Chrysler have eliminated shifts, laid off employees or scheduled days off early this year at plants making slower selling models including the Chevrolet Cruze compacts, Chrysler Pacifica minivans and Buick Lacrosse sedans.

While heavy inventory is a signal of potential pressure on automakers’ profits, it also boosts costs for dealers, which pay interest on inventory as well as any extra expense to store vehicles.

Raj Murjani, a sales manager at a Lexus dealership in Queens, said he’s selling about 40 or 50 fewer vehicles than usual this month. He sees the gap in popularity between SUVs and sedans continuing to widen, as low gasoline prices encourage consumers to switch to bigger vehicles.

“If it’s a person who’s been in a sedan and they got just the slightest taste of an SUV, they don’t ever want to go back,” he said. “They think going back into a sedan is a downgrade.”

Still, even SUVs are contributing to the industry’s inventory issues. Manufacturers scrambled to meet surging demand for them and overbuilt in November and December, said Jeff Schuster, an analyst with researcher LMC Automotive. Incentives on SUVs rose in January.

Kull is the president of Burns-Kull Automotive Group, which operates seven dealerships in New Jersey. He leased an extra lot to store Hyundais in anticipation of new Genesis luxury vehicles. But it’s Honda, with its sedan-heavy mix, that’s giving him the biggest headache.

If automakers moderate production, “it should be OK,” he said.

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How Third-Party Sales Training Can Transform Your Dealership

Staffing and training a successful sales team in the competitive realm of automotive dealerships is no small feat. Achieving sustained growth requires not only the right personnel but also effective training methods that equip them to overcome challenges and close deals efficiently. This is where third-party sales training services, such as those provided by Pinnacle Sales & Mail, redefine the approach for dealerships aiming to enhance their performance and profitability.

This blog explores how external sales training services make managing dealership sales easier, focusing on methods for optimizing sales performance, empowering your team, and employing streamlined, proven strategies. If your dealership is searching for a way to boost sales confidence, improve lead conversion, and increase overall efficiency, you’re in the right place.

The Role of Third-Party Sales Training in Today’s Dealerships

Third-party sales training for car dealerships serves as a critical tool in building a resilient and high-performing team. Often, dealerships focus primarily on hiring new talent without necessarily developing their potential or refining existing techniques. This can lead to stagnation, where outdated methods hinder progress.

Pinnacle Sales & Mail offers dealerships a unique opportunity to rectify this. Whether you’re onboarding sales rookies or seeking to refine the expertise of seasoned staff, Pinnacle’s customized programs focus on developing critical aspects of dealership sales, such as closing techniques, payment bumps, and lead conversions.

Why Turn to External Sales Training?

There are several ways in which third-party sales training services can lighten the operational burden on your dealership:

Specialized Expertise:

External trainers often possess decades of experience working across multiple industries. They bring insights into the latest, data-backed methods for driving conversions, tailored specifically to the challenges faced by car dealerships.

Cost and Time Efficiency:

Training in-house can be resource-intensive, particularly for smaller dealerships. Outsourcing eliminates the need for costly infrastructure, training curriculum development, and dedicated personnel.

Objective Perspective:

An external team assesses your current processes with unbiased expertise, identifying gaps and areas for improvement that might be difficult to see internally.

Proven Strategies:

Pinnacle’s training programs boast a history of success, emphasizing methodologies that have been tried and tested across hundreds of dealerships nationwide.

The Benefits of Third-Party Training for Your Sales Force

When dealerships integrate third-party training into their operations, the advantage goes far beyond teaching staff how to answer inquiries or close deals. With Pinnacle’s sales solutions, here’s what your team stands to gain:

1. Refining Your Sales Process

The road to better dealership performance begins by refining your team’s sales techniques. Pinnacle’s expert trainers focus on every stage of the sales process, empowering your team to build relationships, handle objections, and close with confidence.

Results include:

Higher confidence among sales staff
Increased lead conversion percentages
The ability to close more deals efficiently

2. Empowering F&I Managers

Handling finance and insurance (F&I) operations is one of the most intricate aspects of dealership sales. Pinnacle equips your F&I managers with strategies to maximize profits, increase warranty sales, and reduce time spent on individual deals. This newfound efficiency ensures that customers receive exceptional service without unnecessary delays, creating a win-win scenario for both parties.

Key outcomes:

Increased warranty sales
Faster deal processing
Enhanced customer satisfaction

3. Strengthening Closers and Sales Managers

Having the right tools isn’t enough—your team needs leadership that sets benchmarks for success. Pinnacle emphasizes the importance of managing and motivating sales staff while teaching advanced methods like payment bumps to drive profits further.

Improvements for managers include:

Better team guidance
Higher employee satisfaction and performance
Boosted revenue from effective payment strategies

4. Optimizing Your BDC

Your Business Development Center (BDC) often serves as the gateway to your dealership. Pinnacle’s training ensures that your BDC staff is well-equipped to generate appointments, improve CSI (Customer Satisfaction Index) scores, and streamline lead-processing workflows.

Efficiency gains include:

Setting more qualified appointments
Improved lead utilization and customer relationships
Elevated customer satisfaction levels

The Pinnacle Difference in Dealership Sales Training

Not all third-party training services are created equal. Pinnacle Sales & Mail stands apart because of its comprehensive approach, seasoned expertise, and proven commitment to measurable results. Pinnacle doesn’t just teach general sales techniques; we focus on building sustainable, dealership-specific strategies that optimize every aspect of sales management.

Key Features of Pinnacle’s Training:

Tailored Training Plans: Designed to complement your current practices while integrating fresh, effective approaches.
Expert Trainers: With decades of experience, our team has fine-tuned strategies for hundreds of dealerships.
Data-Driven Insights: Leverage call tracking, recording, and campaign hooks to fine-tune your dealership’s sales process.

Supporting Your Overall Marketing Efforts

Beyond sales training, Pinnacle’s marketing services, including direct mail campaigns and off-site events, amplify your dealership’s outreach efforts. Integrated training ensures your sales force leverages these tools to drive even better results.

Why Effective Dealership Sales Training is Non-Negotiable

Ignoring structured training solutions risks creating inefficiencies that cost dealerships both deals and customer trust. With a program like Pinnacle Sales & Mail, you’re not just training a team—you’re building a workforce capable of navigating a modern, increasingly competitive marketplace.

The benefits of integrating Pinnacle’s service can include:

An increase in conversion rates
Improved employee retention due to better onboarding and ongoing support
Elevated customer satisfaction scores directly tied to streamlined service delivery
A scalable sales process, enabling seamless growth for your dealership

Take the Next Step Toward Sales Excellence

By focusing on streamlined processes, trained personnel, and cutting-edge practices, dealerships can achieve results that impact both their bottom line and brand reputation. Pinnacle Sales & Mail offers the expertise and support needed to make this transition easier and more effective.

Are you interested in transforming your dealership’s sales processes and empowering your team with proven methods? Contact us today to learn more about Pinnacle’s sales training programs and discover how we can help you close more deals while saving you time in the process.

Benefits of Third-Party Sales Training for Your Car Dealership

Sales are the lifeblood of any car dealership. But even the best teams—those stocked with experienced sales professionals and energetic newcomers—need the right training to consistently close deals. While many dealerships rely on in-house training programs, a third-party sales training initiative can provide a significant edge in today’s hyper-competitive market.

At Pinnacle Sales & Mail, we’ve seen firsthand how dealership sales training conducted by specialized trainers transforms teams and significantly impacts bottom-line results. Let’s explore the unique benefits of bringing third-party expertise into your dealership.

Why Sales Training is Critical in the Automotive Industry

Cars represent a complex buying decision for customers. It’s not just the price—it’s an emotional and financial commitment that comes with high expectations for knowledge, service, and trust. Sales professionals must be equipped with the tools to address these customer needs while also driving business objectives.

However, dealerships often fall into ruts of outdated sales techniques or inconsistent practices. This can lead to critical issues like stagnating conversion rates, low lead engagement, and decreased profitability.

Third-party sales training offers an unbiased, results-driven approach to tackle these challenges head-on, helping your dealership remain competitive and focused on growth.

How Third-Party Sales Training Can Transform Your Dealership

1. Perfecting Your Sales Process

An external trainer doesn’t just teach random skills—they analyze your existing sales processes and build upon them, leading to optimized workflows and smoother customer interactions.

At Pinnacle Sales & Mail, our programs focus on enhancing the entire customer experience by training your team to address pain points and build rapport seamlessly. This fine-tuning results in highly polished sales processes that lead to consistent conversion improvements.

2. Boosting Conversion Rates

Every car salesperson’s goal is to engage effectively, educate confidently, and close the sale with the customer’s satisfaction intact. A data-driven training approach can provide team members with the exact strategies they need to convert hesitant leads into happy buyers.

Our trainers at Pinnacle use proven sales techniques to help teams anticipate and overcome objections while maintaining relationships. When your conversion rates increase, so does your profitability.

3. Enhancing F&I Departments for Maximum Profits

The Finance and Insurance (F&I) department is often overlooked as a key profit center in many dealerships. Third-party training addresses vital areas such as maximizing warranty sales and streamlining efficiency during the financing process.

With the right practices in place, F&I managers can boost satisfaction while increasing profits through better upselling strategies and speedier executions.

4. Empowering Your Closers and Sales Managers

Sales managers and closers play crucial roles in motivating teams and ensuring deals are closed effectively. However, even seasoned managers benefit from strategic training programs, especially when it comes to managing payment negotiations and maintaining morale.

Pinnacle’s trainers specialize in equipping sales managers with motivation tools, efficient communication methods, and hands-on leadership skills. A motivated and cohesive sales staff under capable management is an unstoppable force.

5. Elevating BDC Operations

A dealership’s Business Development Center (BDC) is the hub where every lead is nurtured and every appointment is booked. A weak BDC can cripple the sales funnel. Third-party training empowers your BDC team to achieve critical goals, including increasing Customer Satisfaction Index (CSI) scores and improving lead engagement.

At Pinnacle, we help your BDC team streamline operations by simplifying appointment setting and optimizing their system to handle leads efficiently.

Why Choose a Third-Party Trainer Over Internal Training?

Unbiased Expertise

Third-party trainers provide a fresh perspective and solutions tailored to fit your dealership’s specific needs. Unlike internal trainers, who may be limited by over-familiarity or outdated practices, external trainers bring innovative techniques based on current market trends.

Pinnacle’s trainers stay at the forefront of the auto industry, ensuring your team is always equipped with cutting-edge methods to succeed in a competitive market.

Focus on What Matters Most

Internal training programs often require management to split attention between daily operations and employee development. By outsourcing your sales training, your leadership can focus on running the dealership while experts ensure your team reaches its full potential.

The Long-Term Benefits of Investing in Third-Party Sales Training

When implemented correctly, dealership sales training isn’t just an operational expense; it’s an investment in long-term growth. Here’s how it pays off over time:

Higher Employee Retention: Well-trained employees feel confident in their capabilities and are more likely to stay.

Stronger Customer Relationships: Improved communication and customer service build both loyalty and positive reviews, driving repeat business.

Competitive Advantage: Teams trained with relevant sales tactics can outperform competitors and dominate local markets.

Why Pinnacle Sales & Mail is Your Trusted Partner

At Pinnacle, we go beyond just training. With years of experience and specialized knowledge of the automotive industry, we offer tailored sales training solutions for dealerships of all sizes. From increasing conversion rates to refining the performance of your BDC team, we’re here to help you succeed.

Additionally, with our integrated marketing capabilities—including direct mail campaigns and hosted sales events—we drive traffic to your showroom, ensuring your sales team always has a steady stream of opportunities to apply their training.

Take the Next Step to Drive Your Sales Higher

Third-party trainers like those at Pinnacle bring a track record of success to the table. From raising conversion rates to increasing CSI scores, our strategies are field-tested and effective across hundreds of dealerships nationwide.

Your dealership deserves an edge. With Pinnacle’s proven sales training services, your team can overcome challenges, close more deals, and build stronger customer relationships.

Are you ready to take your sales to the next level? Contact us today to learn more about our dealership sales training programs and start your team on their path to success.

Why Direct Mail is Still Relevant for Dealership Marketing in 2025

Digital marketing may dominate the discussion in today’s advertising world, but direct mail remains an indispensable tool for car dealership marketing campaigns. While social media ads and email marketing are popular, automotive direct mail marketing has stood the test of time due to its tangible presence, high ROI, and ability to stand out in a crowded digital space.

The Power of Tangible Connection

Direct mail stands apart from digital advertisements because it is tangible. That physical connection—a brochure or postcard you can hold in your hands—creates a sense of trust and legitimacy for your dealership.

Think about it this way. When was the last time you binge-deleted emails without opening them? Now compare that to how often you’ve checked your personal mailbox to open the few pieces of mail that arrive each day. Research indicates that most consumers feel that direct mail is more personal than digital marketing. For dealerships, this is an entry point to make a memorable impression and foster loyalty.

Why This Matters for Auto Dealers

Car buying is a major life decision for most customers. Creating a trustworthy, engaging first touchpoint can mean the difference between earning a prospect’s trust and losing them to a competitor. With direct mail’s high open rates, dealerships can make their offers stand out in a way that impersonal emails cannot.

Unmatched ROI in an Overcrowded Digital Space

When executed strategically, automotive direct mail marketing can deliver some of the highest returns on investment in the industry. Direct mail campaigns see response rates as high as 9%, significantly higher than email’s 1%.

The reason? Direct mail has the unique ability to cut through the noise. Think of the average auto dealer’s digital ad—there’s a good chance customers won’t remember seeing it due to ad fatigue. Direct mail’s physical format allows dealerships to be memorable, striking the perfect balance between effective messaging and aesthetic appeal.

The High ROI of Personalized Mailings

Direct mail companies that specialize in dealership marketing, like Pinnacle Sales & Mail, often emphasize the importance of personalized content. Tailoring each piece of mail to the customer, referencing their previous vehicle or preferences, leads to engagement rates far beyond generic marketing materials.

This is especially effective in auto dealer direct mail campaigns, where a “we’re inviting YOU to our sales event” tone can resonate on a deeper level than a generalized email blast.

The Integration of Digital and Direct Mail Marketing

Contrary to popular belief, direct mail doesn’t compete with digital—it complements it. Integrated campaigns that combine direct mail with digital touchpoints often outperform stand-alone strategies.

For example, a dealership’s direct mail piece can include QR codes leading to exclusive offers, AR experiences showcasing new inventory, or personalized pre-approval codes for financing that direct recipients to their online application portal. This creates a seamless customer journey that connects physical and digital experiences.

How Dealerships Are Leading in Omnichannel Marketing

Dealership marketing using direct mail pairs naturally with platforms like social media and email marketing. Dealerships that combine these methods not only reach a wider audience but also reinforce their message across multiple touchpoints. Customers receiving both a mailed invitation and a Facebook retargeted ad for a dealership sale are far more likely to attend.

Direct Mail Excels in Local Marketing

For car dealers, proximity matters. The best leads often come from your local community, and direct mail allows for hyper-local marketing that’s both precise and cost-effective.

Compared to running a digital PPC campaign targeting an entire county, geo-targeted direct mail campaigns enable dealerships to focus exclusively on households within a certain radius of their location. With the right direct mail company, dealerships can also segment their mailing lists, ensuring the most relevant deals reach the right customers.

Real-World Success Stories

Pinnacle Sales & Mail has worked with countless dealers to generate showroom traffic through geo-targeted automotive direct mail marketing. The result? Increased walk-ins, higher appointment-made-to-appointment-kept ratios, and consistent sales growth during key campaigns like end-of-year clearances or new model launches.

A Creative Medium for Building Brand Loyalty

Direct mail offers creative possibilities that digital platforms struggle to replicate. From glossy brochures showcasing new inventory to interactive pieces with peel-off discounts or scratch-to-win promotions, the potential to engage customers emotionally and visually is enormous.

Engage Your Customers with Experiences

For example, a dealership could send a direct mail flyer that mimics a gift card, inviting the recipient to an exclusive event where they can “redeem” it for a special discount. Another idea is personalized postcards celebrating the anniversary of their car purchase, paired with an oil change coupon.

These personal touches remind customers why they bought from you in the first place. And they build trust that keeps your dealership top of mind whenever they—or their family and friends—are ready to buy or lease again.

Benefits of Working with Direct Mail Companies

Navigating the complexities of creating a successful direct mail campaign can be overwhelming. That’s where specialized direct mail companies like Pinnacle Sales & Mail come in. These companies are well-versed in automotive direct mail marketing and offer services like:

Design Consulting – Eye-catching, on-brand designs that captivate your audience.
List Management – Access to high-qualified, geo-targeted mailing lists for optimal results.
Professional Printing – High-quality mailers that make your dealership stand out.
Performance Tracking – Tools that track success with detailed analytics and customer feedback.

Partnering with experts simplifies your marketing efforts, giving you time to focus on closing deals while they handle the rest.

Take Your Dealership Marketing to the Next Level

Direct mail for car dealers is more than a marketing throwback—it’s a proven, innovative way to generate leads and grow your business. Whether you’re looking to drive foot traffic to your showroom or boost attendance at a sales event, direct mail campaigns provide the personal touch that digital strategies often lack.

Partner with Pinnacle Sales & Mail today to take full advantage of direct mail’s unparalleled potential. With services like BDC Call Centers, Hosted Events, and expertly designed Coop Direct Mailers, we provide everything your dealership needs to thrive in an increasingly competitive industry.

Contact Pinnacle Sales & Mail now to start crafting your winning campaign. Don’t settle for ordinary—choose exceptional.

How Other Industries Leverage Direct Mail Marketing

When thinking about marketing strategies for car dealerships, digital methods often take center stage. However, direct mail marketing remains one of the most consistent and successful ways to connect with potential buyers even in today’s digital-first world. Here’s the thing—direct mail isn’t just for dealerships. Industries across the board have tapped into this traditional yet powerful tool to deliver impressive results. From nonprofits to real estate agencies, direct mail is alive, thriving, and evolving.

Why is Direct Mail Still Relevant?

Before we jump into examples, let’s address the elephant in the room—why is direct mail still relevant in 2025? While digital marketing reigns supreme, the saturated online space can make it hard for brands to stand out. Direct mail offers a tangible, personal touch that digital ads simply cannot replicate. Studies show that 73% of consumers prefer being contacted by brands through mail because it feels more personal, and direct mail boasts a significantly higher response rate than email.

For industries like auto dealerships, combining timeless direct mail strategies with data-driven insights and creative designs can result in campaigns that not only capture attention but also convert leads into loyal customers.

Key Industries Succeeding with Direct Mail Marketing

The strategies these industries use aren’t just informative—they’re directly transferable to automotive direct mail marketing campaigns. Here’s how other businesses are harnessing direct mail successfully.

1. Retail: Weekly Promotions that Drive Foot Traffic

Retailers like Target, Costco, and Macy’s consistently use direct mail to announce sales, deliver coupons, and promote in-store events. Their approach focuses on urgency (“This Week Only!”) and easy-to-understand incentives, like percentage-off or buy-one-get-one deals.